Japan Ferrous Scrap Market Price Continues Decreasing

Japanese ferrous scrap market price continues decreasing. H2 price downed by 500-1,000 yen to 30,500-32,000 yen per tonne this week impacted by weak export market. Electric furnace steel makers around Osaka had lowered their scrap purchasing price in early September while electric furnaces around Tokyo moved to price cut on Tuesday. This is the first price down by electric furnaces around Tokyo in late 2 months. A scrap dealer source said the market price is unlikely to decrease largely when domestic demand maintains steady and scrap export shipment is smooth for concluded contracts.

Newly contracted export price is around FOB 30,500 yen per tonne for H2 grade, down by 2,000 yen from the recent peak in mid August. Current export price is lower than domestic market price though South Korean steel makers are purchasing Japanese ferrous scrap.

Electric furnace steel makers around Tokyo purchase H2 at around 30,000-31,500 yen per tonne and some pay as high as 32,000 yen. Electric furnaces, such as Tokyo Steel Manufacturing, reduced the purchase price by 500 yen on Tuesday. Export price from Tokyo Bay is also declining when overseas steel makers don’t increase purchase volume of Japanese ferrous scrap.

Around Osaka, electric furnace steel makers are following the price down by Tokyo Steel on Tuesday. Local makers’ purchase price is around 30,500-31,500 yen for H2, down by 500-1,000 yen from last week. Most makers lowered the purchase price while some set low grade scrap price unchanged. A dealer source said domestic market price wouldn’t decrease widely when dealers’ joint export shipment is scheduled and steel makers’ productions are expected to increase in October.